5. The seasonally adjusted, break-adjusted monetary base consists of
(1) seasonally adjusted, break-adjusted total reserves plus
(2) the seasonally adjusted currency component of the money stock plus
(3), for all quarterly reporters on the "Report of Transaction Accounts, Other Deposits and Vault Cash"
and for all those weekly reporters whose vault cash exceeds their required reserves, the seasonally
adjusted, break-adjusted difference between current vault cash and the amount applied to satisfy current
reserve requirements. (Also, refer to footnote 3 in table 2 and footnote 4 in table 3.)

1. The Federal Reserve Bank of New York (FRBNY) has extended credit to Maiden Lane LLC,
Maiden Lane II LLC, and Maiden Lane III LLC, as discussed in the notes
to the Board's H.4.1 statistical release, "Factors Affecting Reserve Balances of Depository Institutions and
Condition Statement of Federal Reserve Banks." Consistent with generally accepted accounting principles, the
assets and liabilities of these LLCs have been consolidated with the assets and liabilities of the FRBNY because
the FRBNY is the primary beneficiary of the LLCs. As a consequence of this consolidation, the
extensions of credit from the FRBNY to these LLCs are eliminated from the Federal Reserve's balance sheet, and,
thus, the loans are not included in borrowed reserves.

2. As a result of the closing of the American International Group, Inc. (AIG) recapitalization
plan on January 14, 2011, the credit extended to AIG was fully repaid and the Federal Reserve's commitment to lend
any further funds was terminated. Before the closing of the AIG recapitalization plan, this borrowing category included
outstanding principal and capitalized interest under the revolving credit facility net of unamortized deferred commitment
fees and allowance for loan restructuring, and it excluded credit extended to consolidated LLCs as described in footnote
1 above.

3. Includes credit extended by the Federal Reserve Bank of New York to eligible borrowers
through the Term Asset-Backed Securities Loan Facility.

3. The monetary base, not break-adjusted and not seasonally adjusted, consists of
(1) total reserves plus (2) required clearing balances and adjustments to compensate for float at Federal
Reserve Banks plus (3) the currency component of the money stock plus (4), for all quarterly reporters on the
"Report of Transaction Accounts, Other Deposits and Vault Cash" and for all those weekly reporters whose vault
cash exceeds their required reserves, the difference between current vault cash and the amount applied to satisfy
current reserve requirements. Currency and vault cash figures are measured over computation periods ending on
Mondays.

4. Excludes required clearing balances and adjustments to compensate for float and includes other
off-balance-sheet "as-of" adjustments.

5. Vault cash eligible to satisfy reserve requirements. It includes only vault cash held by
those banks and thrifts that are not exempt from reserve requirements. Dates refer to the maintenance periods
in which the vault cash can be used to satisfy reserve requirements.

6. All vault cash held during the lagged computation period by "bound" institutions (i.e.,
those whose required reserves exceed their vault cash) plus the amount of vault cash applied during the
maintenance period by "nonbound" institutions (i.e., those whose vault cash exceeds their required reserves)
to satisfy current reserve requirements.

7. Total vault cash eligible to satisfy reserve requirements, held by depository institutions
not exempt from reserve requirements, minus the amount used to satisfy reserve requirements.

8. Consists of carryover only at depository institutions maintaining reserves on the basis of
two-week maintenance periods. Reflects excess (+) or deficit (-) reserves eligible to be carried forward into the
two-week reserve maintenance period ending on the date shown.

Note: Current and historical H.3 data are available each week on the Federal Reserve Board's website
(http://www.federalreserve.gov/). Monthly data are available back to January 1959, and weekly data
are available back to January 1975 for most series.

3. To adjust required reserves for discontinuities due to regulatory changes in reserve
requirements, a multiplicative procedure is used to estimate what required reserves would have been in past
periods had current reserve requirements been in effect. Break-adjusted required reserves are equal to
break-adjusted required reserves against transactions deposits.

4. The break-adjusted monetary base equals
(1) break-adjusted total reserves plus
(2) the (unadjusted) currency component of the money stock plus
(3), for all quarterly reporters on the "Report of Transaction Accounts, Other Deposits and Vault Cash"
and for all those weekly reporters whose vault cash exceeds their required reserves, the break-adjusted
difference between current vault cash and the amount applied to satisfy current reserve requirements.